Earlier this year, the Taal Volcano erupted and spewed ash as high as 14 kilometers in the air. The eruption caused damage to thousands of homes and properties and affected the lives of residents and business owners in neighboring towns.
Just this November, the Philippines was battered by typhoons Rolly and Ulysses, the world’s most powerful typhoons this 2020, causing billions of pesos in damage to residential and business properties, as well as agriculture and public infrastructure.
These natural catastrophes cannot be avoided or prevented, but they serve as a good wake-up call to protect your property from damage and yourself from the resulting financial loss.
An Acts of God or Acts of Nature coverage can help you take care of that.
What is Acts of God or Acts of Nature?
As a responsible car owner, getting comprehensive motor insurance is a non-negotiable. It’s for the safety of your vehicle and for your own peace of mind as well.
Usually, that will be enough. But we live in a country often hit by typhoons, earthquakes, and volcanic eruptions. Acts of God or Acts of Nature will give you additional coverage against events that are beyond our control and which cannot be avoided or prevented even with preparation or with caution.
If your motor insurance policy has this key add-on, that means your insurance company will help pay for repairs or damages incurred after a catastrophe strikes.
Why do you need this kind of coverage?
Even with the most sophisticated early warning systems, there’s no stopping Mother Nature. However, you can still prepare to mitigate the risks and save your properties from total damage.
If you don’t have this type of insurance coverage, you will need to pay a huge amount for repairs should your car get damaged or lost. So it would be wise to have this add-on in your car insurance policy.
What is included under Acts of God/Acts of Nature?
Most insurance companies in the Philippines cover natural disasters like typhoons, floods, earthquakes, and volcanic eruptions. Inclusions will vary depending on the insurance company, but these are what’s commonly included:
- Volcanic eruption
- Civil unrest (riots, strikes)
- Vengeful mischief
- Animal contact
- Falling objects
How do you get Acts of God/Acts of Nature coverage, and how much will it cost?
It’s not a standalone policy that you can readily purchase. Acts of God/Acts of Nature is usually offered by insurance companies as an addition to your comprehensive car insurance.
If it’s your first time to get car insurance, make sure to tick this option in the application form. Expect your insurance premium to increase with this add-on, usually 30% to 40% of your insurance premium.
If you already have an existing car insurance policy, you can request for a revision or a modification to have this included.
Who will benefit from Acts of God/Acts of Nature coverage?
- Car owners who are currently paying off their car loans or have their vehicles mortgaged
- Homeowners who have Acts of God or Force Majeure coverage
Some things to remember
- Make sure to review your application form and the draft of your car insurance policy before submitting it for processing. It’s important to know which natural calamities the insurers will cover and which ones they will not so you can manage your expectations.
- Not all Acts of God/Acts of Nature claims are valid. There must be an official announcement from the respective agencies and government bodies in the Philippines if you will make a claim.
- Car owner’s negligence resulting in car damage will not be covered under Acts of God/Acts of Nature. Some of these include but are not limited to the following:
- Leaving your car windows down after a sudden heavy rainfall followed by flash flooding
- Driving on landslide/flood-prone areas despite bad weather conditions and warnings from relevant authorities and agencies
- Passing through flooded streets when it’s obvious that they are impassable for vehicles
What should you do if your car gets damaged?
If you have Acts of God/Acts of Nature coverage, prepare the required documents and contact your insurance company right away.
Some of the things that you need to provide include a police report, a notarized affidavit, a photocopy of your driver’s license (with latest official receipt), LTO Certificate of Registration (with latest registration official receipt), and photos showing damage to your vehicle including plate number.
You may also be required to submit a quotation or repair estimate from your preferred car repair or motor shop.
A lot of Filipino car owners tend to ignore or skip Acts of God/Acts of Nature when purchasing car insurance. Most of them think that their chances of experiencing a major natural disaster are slim to nil.
While this can be true for some, there’s nothing wrong with being extra ready for the unexpected. When you know you’re protected, it will help ease your worries and reduce your financial burdens in case something bad does happen. .
If you’re having second thoughts about getting Acts of God/Acts of Nature, just think about the monthly insurance premium and compare it to the amount you will need to shell out for car repairs. It’s really just a small price to pay!